Entelecom’s insights into the state of the tower industry in Indonesia

Entelecom is a private wireless telecom organisation that specialises in cellular, drive testing, optimisation and building coverage. The services they offer enable customers to gain fast network analysis and reports. The company has developed a series of new innovative test and monitoring tools and services that could be used by towercos as well as contractors and operators.

Entelecom’s solutions are cost, labour and time effective compared to tools being used today. In this article Mikael Bruun, CEO of the company, discusses the current state of the telecom tower market in Indonesia and the future of their operations in this region.

TowerXchange: Could you tell us about your career in the telecom industry so far? 

In 2012 I moved from Ramboll to Retower, one of the smaller tower companies in Indonesia. I joined to help them develop their business and when the contract ran out, I was headhunted for IBS, another medium size towerco here in Indonesia.

While working for them I helped them shift their focus from passive infrastructure to radio equipment. It is my belief that this is the only future for tower companies hoping to develop their business further in this local market.

We were able to move away from the traditional towerco concept onto more modern network architecture. That is what we have been doing in Europe for fifteen years or so and it’s something large towercos are increasingly aware of. The ideal scenario is for operators that fall within national infrastructure to outsource all their active equipment. And this is where towercos come into play.

TowerXchange: How would you define the Indonesian tower market?

I would say that this industry isn’t really black and white. We have had a lot of bad experiences and there is a generally widespread mistrust among players. Some companies are highly experienced and capable but there is also a lot to learn and room for improvement. Honestly, the whole country has an issue with corruption and this reflects on many industries, including telecommunications.

TowerXchange: But you are still active in Indonesia with Entelecom… Where does your business position itself in the value chain?

My partner and I have come up with a process to make deploying our monitoring tools into an operator’s network more economical. We developed a whole new set of tools and services. We can do drive testing in a mobile network, as well as monitoring and testing for indoor networks. Our service can also be used to assess the coverage prior to and after designing a network.

This can now be done a lot cheaper than before. The most significant reason for this change in cost is that all of our equipment is running automatically, engineers are not required to operate it. Also, after drive testing, engineers have often been required to make reports. We have developed computer technology that develops the same reports which is also automated and ensures significant savings.

TowerXchange: When it comes to offering your solutions, do your systems focus primarily on big cities?

Potentially yes but we could also work in rural areas. However, when it comes to indoor networks in metropolitan areas, we often face a conflict as most of them are run by third party companies rather than operators and these companies don’t always have an interest in ensuring QoS.

We often see that these systems - which could have great potential - are plagued by lack of quality and proper monitoring.

TowerXchange: Is the main problem a lack of capability or a lack of available products? Why are these products not at the right standard in Indonesia?

Our market research found that 97% of Indonesians being asked about the quality of their networks said they were generally unsatisfied with the coverage, which proves the need for our services. Everyone in the industry knows the quality could be better but it seems no one is really working hard to improve it.

TowerXchange: Has Entelecom faced any issues dealing with the Indonesian and Asian culture?

It has taken time but the mind-set of the people here is starting to change. The company’s success depends on its ability to connect with some of the key decision makers in the industry. Politics can be a considerable issue in the industrial sector. If Indonesia experiences more positive changes to the political system as their economy grows then this could result in greater opportunities in the telecom sector. There are great hopes for the new president and the changes that he is implementing.

Countries such as Myanmar are great examples of how quickly the industry can develop as a result of greater political stability. It is very similar to Indonesia ten years ago. However, it is very challenging as the rollout targets are extremely aggressive.

TowerXchange: Which companies are likely to invest in your solutions?

There is a small group of towercos that are striving to be different and they are driven to really improve the level of their service. Tower Bersama is a good example of this and they are really working hard to build a legitimate business. I have worked very closely with them in the past.

Our clients are willing to invest in our tools and services as they are very innovative solutions. There is a worldwide interest as there are no other companies that matches our products and services. At this moment we are involved in projects in Australia, Myanmar and Denmark and in discussion with parties from various other countries showing interest for our products and services.

In terms of our international operations, we are looking for qualified partners worldwide. We aim to expand through joining together with partners that have knowledge of their local market. They have the connections and a better understanding of the market. Our company targets partners with experience in the field of testing and monitoring. These companies have a better grasp of the industry and can move in faster on possible projects

TowerXchange: Which trends have you been seeing in the market in terms of tools and services being adopted?

Several tower companies are starting to implement more drive testing. However, if it is done in the traditional way it can be very expensive. Also, if you use an external source you will only receive a one-time report, whereas our service allows all the data to be displayed at any time via our unique online Graphic User Interface. They will always be able to follow up on their progress. Using our services tower companies would be able to firstly prove the value, towards their clients, of using their towers. Secondly they would be able to spot out best places to position new towers ahead of competitors. The market is always developing and companies must keep up to date with these changes to surpass their competition.

Tower companies have struggled with the financial implication of using these kind of services in the past due to high costs. Using our services is much more affordable and can open lots of opportunities for us and to generally improve the QoS of the telecom industry in Indonesia and beyond.